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Diversify investment strategies for stronger portfolio performance
Diversification is key for property investors, says Nuestar’s Michael Wilkins in latest podcast episode
Exploring why smart diversification is key for property investors, especially industrial, boosts yields and lowers risk.
Is comfort the enemy of profit? On this episode of The Property Playbook, Tim Graham speaks with Michael Wilkins, Managing Director of Nuestar, about the pitfalls of sticking to a single asset type. He highlights the importance of smart diversification, particularly through industrial property, to increase yields and reduce risk.Investors are encouraged to explore options beyond residential properties. This includes townhouses, house and land packages, and industrial assets to achieve better income outcomes.
Understanding the fundamentals of industrial investing is crucial. Key aspects include strategic location and reliable tenants, which often cover most expenses associated with the property.
Financing plays a significant role in property investment. Typical loan-to-value ratios (LVRs) range from 70% to 80%, with opportunities for higher leverage depending on individual circumstances. Tenancy-based lending is also worth exploring for investors.
